ELS Summer 2016

LTD Q&A

QUESTION AND ANSWER: (LTD)

Who can
Philippines?

own

land

in

the

ANS: Acquisition and ownership of

private lands in the Philippines is
limited and/or reserved to Filipinos or
to Corporations or partnerships where
at lease 60% of the authorized capital
of which is owned by Filipino citizens,
except: When such property is
acquired
prior
to
the
1973
Constitution; Acquisition by an alien or
foreigner by hereditary succession;
Aliens/foreigners owning not more
than 40% interest in a condominium
project pursuant to RA 4726; Where a
former natural born Filipino who
became a citizen of another country
but is now returning to the Philippines
to reside hereat permanently. Hence,
hay acquire through sale, donation, or
through a tax sale, foreclosure sale, or
execution sale not more than 1,000
sq. m. for urban land or not more than
10,000 sq. m. for rural land to be used
solely for residential purposes and
subject to other limitations and
requirements as provided under the
law (Batas Pambansa No. 185); A
Filipina who marries an alien retains
her Philippine citizenship (to avoid
being stateless) unless by her own act
or omission she is deemed to have
renounced her Filipino citizenship, may
acquire and own private lands in the
Philippines.
Category:
Sales
and
Rights
of
Ownership
What are the bundle of rights of
property ownership?
ANS: The bundle of rights theory
inherent to property ownership are the
right to use (Jus-Utendi), the right to
enjoy the fruits of (Jus-Fruendi), the
right to dispose (Jus-Disponendi), the
right to abuse (Jus-Abutendi), the right
to recover (Jus-Vindicandi), and the
right to possess (Jus-Possidendi). The
rights incident to ownership are, the
right: to enjoy and dispose of a

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property without other limitations than

those established by law; to file action
against third parties to recover
ownership; to use force as may be
reasonably necessary to repeal or
prevent an actual or threatened
unlawful invasion or usurpation of his
property (Art. 429, NCC, relate to Art.
312, RPC); the right to enclose or
fence property - walls ditches, live or
dead hedges - or by any other means
without
detriment
of
servitudes
constituted
thereon;
to
demand
indemnity for damages caused to
property; the right to compensation in
the event of expropriation; the right to
be restored to possession in case of
unlawful dispossession; the right to
the surface and subsurface of the
land, right to construct thereon any
works, plantation and excavation
without detriment to servitude and
subject to special laws and without
right to complain of the reasonable
requirements of aerial navigation; the
right to hidden treasure; the right to
accession and fruits of the property;
the right to "quiet title" to real
property or any interest therein.
Category:
Sales
and
Rights
of
Ownership
What is the Steward Concept of
property ownership?
ANS: The Steward Concept is a legal
doctrine which holds that property
ownership presupposes noncomittant
obligations to the state and the
community and that property is
supposed to be held by the individual
only as trustee for people in general;
and that as mere steward, the
property owner must exercise his
rights to the property not just for his
own exclusive and selfish benefit or
interest but for the good and general
welfare of the nation as a whole.
Category:
Sales
and
Rights
of
Ownership
What is the Regalian Doctrine of
property ownership?

ELS Summer 2016

LTD Q&A

ANS: A principle in law which means

that all natural wealth - agricultural,
forest or timber, and mineral lands of
the public domain and all other natural
resources belong to the state. Thus,
even if the private person owns the
property
where
minerals
are
discovered, his ownership for such
does not give him the right to extract
or utilize said minerals without
permission from the state to which
such minerals belong.
Category:
Sales
and
Rights
of
Ownership
What are the limitations on right of
property ownership?
ANS: CONSTITUTIONAL - such as
police power, eminent domain or
expropriation of private property for
public use, taxation and escheat when
revision of private property to state
ownership in case of death of property
owner without an heir; LEGAL - zoning
ordinances, regulations on subdivision
projects, building code, and other
special laws and regulations; and
CONCENSUAL/VOLUNTARY
easements and servitudes, usufructs,
lease agreements, restrictions in
subdivision and condominium deeds or
restriction.
Category:
Sales
and
Rights
of
Ownership
What are the different modes of
acquiring property ownership?
ANS: Private Grant - such as in a
voluntary deeds of sales of property;
Public Grant - by administrative
method of government such as in
homesteads, free patent, etc; Descent
by
hereditary
succession
or
inheritance; Accretion - the process by
which soil is deposited to lands
adjoining rivers or flowing waters;
Reclamation - the filling of submerged
land by deliberate act; Adverse
Possession or Prescription - the

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continuous, public and uninterrupted

possession of a property for a period
fixed by law; Voluntary Transfer - such
as by execution of sale; Involuntary
Alienation or Involuntary Grant - the
process by which the land is taken
against the consent of the owner.
Examples
are
expropriation
proceeding, execution of judgement,
tax
sales,
and
foreclosure
of
mortgage; Devise - the acquisition of
land by a person through the will of
the owner or the testator such as in
donation; Emancipation Patent - the
grant of agricultural land to tenantfarmers in the implementation of the
land
reform
program
of
the
government.
Category:
Sales
and
Rights
of
Ownership

What
servitudes?

are

easements

and

ANS: EASEMENT refers to a right of

use over the property of another.
Traditionally, the permitted kinds of
uses were limited, the most important
being rights of way and rights
concerning
flowing
waters.
The
easement was normally for the benefit
of adjoining lands, no matter who the
owner was, rather than for the benefit
of a specific individual. On the other
hand, SERVITUDE is a burden imposed
upon another. Servitudes are also
classed as positive and negative. A
positive servitude is one which obliges
the owner of a servient estate to
permit or suffer something to be done
on his property by another. A negative
servitude is one which does not bind
the servient proprietor to permit
something to be done upon his
property by another, but merely
restrains him from making a certain
use of his property which would impair
the
easement
enjoyed
by
the
dominant tenement. It is stated in the
law that a person has a right
(easement) to impose a burden
(servitude) upon another in cases
provided for by law.

ELS Summer 2016

Category:
Ownership

Sales

LTD Q&A
and

Rights

of

What are requirement for a

compulsory easement of Right-of-Way?
ANS: Property is surrounded by other
properties and there is no adequate
exit to the public highway; payment of
proper indemnity; the isolation was
not due to owners own acts; and the
right of way claimed is at the point
least prejudicial.
Category:
Sales
and
Rights
of
Ownership
What is Torrens Title, its meaning
and implication?
ANS: A Torrens Title is a certificate of
ownership issued under the Torrens
System
of
registration
by
the
government, through the Register of
Deeds, naming and declaring the
owner in fee simple of the real
property described therein, free any
and/or liens and encumbrances exept
such as may be expressly noted
thereon or otherwise reserve by law.
Category:
Sales
and
Rights
of
Ownership
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What is a Contract of Sale?
By the COntract of Sale, one of the
contracting parties obligates himself
to transfer the ownership of and to
deliver a determined thing, and the
other to pay therefor a price certain in
money or its equivalent.
Category:
Sales
and
Rights
of
Ownership
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What are the essential elements of
a Contract of Sale?

Twenty19 3

The essential elements (those without

these can be NO valid sale) of a
Contract of Sale are: (1) Consent or
meeting of the minds, that is, consent
to transfer ownership in exchange for
the price; (2) Determinate subject
matter generally, there is no sale of
generic thing, morover, if the parties
differ as to objects, there can be no
meeting of minds; and (3) Price certain
in money or its equivalent ( this is the
cause or consideration, and the price
need not necessarily in money).
Category:
Sales
and
Rights
of
Ownership

Who may enter into Contract of

Sale? Who cannot enter into sale
contract?
Generally, all persons who are
authorized under the Civil Code of the
Philippines to obligate themselves,
may enter into a contract of sale.
However, the following persons cannot
give consent to a contract, hence,
they cannot enter into a contract of
sale: (1) unemancipated minors (note:
majority age now is 18 based on Art
234of RA6804 Family Code), and (2)
insane or demented persons, and
deaf-mutes who do not know how to
read or write.
Category:
Sales
and
Rights
of
Ownership
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Double Sale. If the same land is
sold to two diferent vendees, who has
the better right to the land?
The rule on double sale is as follows:
(1) The buyer is good faith who first
REGISTERED the property with the
Register of Deeds has the better right;
(2) In case neither registered, the
buyer in good faith who was first in
POSSESSION; and (3) should there be
neither registration nor possession,

ELS Summer 2016

LTD Q&A

then the buyer in good faith whocan

present the OLDEST TITLE.
Category:
Sales
and
Rights
of
Ownership
What is the General Rule governing
the capacity to buy or sell real
properties in the Philippines?
ANS: The following rules govern the
acquisition or sale of real properties in
the Philippines: (1) As a rule, all
persons, natural or juridical, who are
authorized by the constitution to own
lands, and bythe New Civil Code to
obligate themselves, may buy or sell
real properties.
Category:
Sales
and
Rights
of
Ownership
What is the bearing of citizenship
on the capacity to buy or sell real
properties in the Philipines?
ANS:
Only
Filipino
citizens
or
corporation with at least 60% of the
capital owned by Filipino citizens can
acquire lands in the Philippines. A
Filipino citizen, who got married to a
foreigner
retains
the
Filipino
citizenship and thus also retains the
right to acquire lands in the Philipines.
A Filipino citizen, who acquires
citizenship of another country can
retain ownership of land acquired by
him prior to his change of citizenship.
Category:
Sales
and
Rights
of
Ownership
Can spouses sell properties to each
other?
ANS: The answer is NO, except when
a separation of property was agreed
upon in the marriage settlement, or
when
there
has
been
juridical
separation of property.
Category:
Sales
and
Rights
of
Ownership
Who cannot acquire real properties
by purchase, even at public or judicial

Twenty19 4

auction, either in person or through

the mediation of another?
ANS: The guardian, with regards to
the property of the person under his
guardianship Agent, with respect to
the property whose administration or
sale have been entrusted to him,
unless the principal was informed
before the purchase Executor and
administrator, with respect to the
property under their administration
Public offers and employees, with
respect to government properties
entrusted to them; this provision shall
apply to judges and government
experts who take part in the sale
Justices,
judges,
prosecuting
attorneys, clerks of superior courts,
and other officers and employees
connected with the administration of
justice, with respect to the properties
in litigation before the court within
their jurisdiction; this prohibition shall
apply to lawyers, with respect to the
property under litigation which they
handle by virtue of their profession
Other person disqualified by law
Category:
Sales
and
Rights
of
Ownership
What are the characteristics of a
contract of sale?
Consensual it is perfected by mere
consent without any further act;
Bilateral both contracting parties are
bound to fulfill obligations towards
each other, the seller, to deliver and
transfer ownership of the thing sold
and the buyer, to pay the price;
Onerous the thing sold is conveyed
in consideration of the price and vice
versa; Commutative - the thing sold
is considered the equivalent of the
price paid and vice versa;
Nominative it is given a special name
or designation in the Civil Code;
Principal it does not depend for its
existence and validity upon another
contract.
Category:
Sales
and
Rights
of
Ownership

ELS Summer 2016

LTD Q&A

What are the two types of Contract

of Sale?
Absolute - An Absolute Contract of
Sale is one where the property is sold,
transferred and conveyed to the
vendee in fee simple, ownership
transferred irrevocably upon the
consummation of the contract and
subject
to
no
other
condition
whatsoever. Conditional - While a
Conditional Contract of Sale is one
where property sold, transferred or
conveyed to the vendee is less than
fee
simple,
ownership
thereto
although already transferred to the
vendee is subject to the conditions
agreed upon.
Category:
Sales
and
Rights
of
Ownership
What is the difference between
Contract to Sell and Contract of Sale?
As to transfer of title In contract of
sale, title passes to the buyer upon
delivery of the thing sold, while in
contract to sell, the title is not yet
passed until the full payment of the
purchase price. As to payment of price
In contract of sale, non-payment of
the price is a negative resolutory
condition, while in contract to sell, full
payment is a positive suspensive
condition As to ownership of seller
In contract of sale, seller lost
ownership of the thing sold, while in
contract to sell ownership stays with
the seller.
Category:
Sales
and
Rights
of
Ownership
What is the difference between the
sale and the agency to sell?
ANS: In sale, buyer receives goods as
owner, while in agency to sell, agent
receives goods but ownership remains
with principal. In sale, buyer pays the
price, while in agency to sell, agent
accounts proceed of sale in behalf of
the principal In sale, buyer cannot
return goods, while in agency to sell,
an agent can return goods in case it
was not sold. In sale, seller guarantees

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the thing sold, while in agency to sell,

agent assumes to personal liability on
things sold. In sale, buyer can do
whatever he wants on the goods,
while in agency to sell, agent must
follow instruction of the principal.
Category:
Sales
and
Rights
of
Ownership
What is the difference between
sale and dation in payment (dacion en
pago)?
ANS: In sale, no pre-existing debt
before the agreement, while in dation
in payment, there is pre-existing debt.
In sale, obligation to pay is created
after the agreement, while in dation in
payment, obligation to pay is satisfied.
In sale, the price is not fixed prior to
the agreement, while in dation in
payment,
the
price
is
already
determined which is the debt. In sale,
buyer had to pay the price after the
contract, while in dation in payment,
payment is already received in the
form of loan.
Category:
Sales
and
Rights
of
Ownership

What is an option contract?

ANS: Option contract is an agreement
which gives a person the right to buy a
certain
specified
property
from
another person within the agreed
period and agreed price. It is distinct
from the contract the parties may later
enter into upon the consummation of
the option. A consideration of an
option contract is just as important as
that of any other contract. An option
without consideration is void.
Category:
Sales
and
Rights
of
Ownership
What is an offer to buy or sell?
ANS: When an offer is made, and
accepted by the offeree within the

ELS Summer 2016

LTD Q&A

stipulated period before it was

withdrawn by the offerer, there is
constituted binding contract of sale
although the option is given without
consideration.
Category:
Sales
and
Rights
of
Ownership
What is an earnest money?
ANS: It is money given by the buyer
to the seller, as a proof of the
perfection of the contract. Actually, it
is a partial payment of the purchase
and it must be deducted therefrom.
Category:
Sales
and
Rights
of
Ownership
What is the difference between
option money and earnest money?
ANS: Earnest money is part of the
purchase price, while option money is
given as distinct consideration for an
option contract. Earnest money is
given only when there is already a
sale, while there is an option money
even the sale is not yet perfected.
Category:
Sales
and
Rights
of
Ownership

Which sale must be in writing?

ANS: Sale of personal property at a
price not less than P500.00. Sale of
real property or an interest therein
regardless of the price involved; and
Sale of property not to be
performed within a year from the date
thereof regardless of the nature of the
property and the price involved.
Category:
Sales
and
Rights
of
Ownership

Suppose the contract is on

installment basis, is it a Contract to
Sell or a Conditional Contract of Sale?
ANS: It depends of the stipulation in
the contract. If for instance, land is

Twenty19 6

promised to be sold, and title given

only the down-payment and the
monthly installments therefore shall
have been fully paid, then the
agreement is a Contract to Sell. (i.e.)
the following contract by stipulating
that for and in consideration of
P10,000.00 of which P5,000.00 is
hereby received and the balance
payable in two equal installments, I
promise to sell and convey unto the
vendee the land described herein
upon full payment of the purchase
price, is a Contract to Sell. On the
other hand, in the same example
above, after the word receivedand
the balance payable in two equal
installments, I hereby sell, transfer
and convey the said parcel of land
then this is a Conditional Contract of
Sale or, in short, Contract of Sale.

If the contract authorizes the

vendor to automatically rescind the
contract upon the failure of the
vendee to pay there or more equal
installments, may the vendor actually
treat the contract as automatically
rescinded if the vendee failed to pay
the installments?
If it is a Contract to Sell, Yes. Failure to
make the needed payment is failure to
comply with the suspensive condition.
Hence, the promissor is not obliged to
convey title and after an unsuccessful
demand for the said price, there would
be nothing wrong if he sells the
property to another. He can also forfeit
the installment payments already
made to be considered as rental for
the use of the property subject of the
Contract to Sell. On the other hand, if
the contract is a Conditional Contract
of Sale and/or a Contract of Sale, the
vendor cannot rescind the contract
even if it may have been stipulated
that upon failure to pay the price at
the time agreed upon the rescission of
the contract shall of right take place.
The vendee may pay, even after the
expiration of the period, as long as no
demand for the contract has been
made upon him either judicially or by

ELS Summer 2016

LTD Q&A

a notarial act. After the demand, the

court may not grant him a new term.
Category:
Sales
and
Rights
of
Ownership
What are the obligations of the
vendor?
ANS: To deliver a determine thing
To transfer its ownership (seller/
vendor need not to be the owner at
the time of perfection of the contract;
however, to the owner at the time of
delivery To warrant against eviction
and against hidden defects To pay
for the expenses of the deed of sale
Category:
Sales
and
Rights
of
Ownership
What are the obligations of the
vendee/ buyer?
ANS: To accept the property sold
To pay the price of the property
Category:
Sales
and
Rights
of
Ownership

What is the warranty against

defects of a property sold? What is its
difference from warranty against
eviction?
ANS: In a Contract of Sale, unless a
contrary intention appears, there is:
An implied warranty that the thing
shall be free from any hidden faults or
defects,
or
any
charge
or
encumbrances not declared or made
known to the buyer An implied
warranty against eviction by virtue of
which if the vendee is deprived of the
whole or part of the things purchased
by a final judgment based on a right
prior to the sale or an act imputable to
the vendor, such vendor shall answer
for the eviction although nothing has
been said in the contract on the
subject
Category:
Sales
and
Rights
of
Ownership
Who pays for the documentation
and registration of the property Sale?

Twenty19 7

ANS: There are two parts of the whole

paperwork: (1) Documentation of Sale
and (2) Registration of Property to New
Owner.
Documentation
includes
Notarization
of
Deed
of
Sale,
Documentary Stamp Tax of the Deed
of Sale Document, Capital Gains Tax,
Ad-Valorem Tax, Real Estate Tax
Declaration.
Documentation
is
supposed to be paid by the vendor.
When the BIR issues the Certificate of
Authority to Register, documentation
of sale is already complete. The next
step is the legal obligation of the
vendee to Register the Property and
pay all expenses related to it including
Transfer Tax, new Real Estate Tax
Declaration, and Title Registration. But
there are times that both parties make
special agreement to the contrary.
Category:
Sales
and
Rights
of
Ownership

How do you resolve an issue

wherein the area of the land sold
should later turn out to be greater or
smaller than that stated in the
contract?
ANS: If the sale is for a lump sum,
(not for a certain price per square
meter) there shall be no increase or
decrease of the price, although there
be a greater or lesser area than that
stated in the contract If the sale be
made with statement of its area at the
rate of a per-price per square meter,
the following rules shall apply: If the
actual area is bigger, the vendee may
Accept the area included in the
contract and reject the excess, or
Accept the whole area, but must PAT
the excess area at the contract price
If the actual area is smaller the
vendee may choose to have a
proportional reduction of the price, or
Rescind the contract provided: That
the lack in the area be not less than
10% of that in the contract, or That he
would not have bought had he known
of its smaller area
Category:
Sales
and
Rights
of
Ownership

ELS Summer 2016

LTD Q&A

What is a Pacto de Retro Sale?

ANS: A Pacto de Retro Sale is a
contract of sale with the stipulation
that the vendor shall have the right to
buy back or redeem the property
within an agreed period.
Category:
Sales
and
Rights
of
Ownership
What are other specific conditions
of a Pacto de Retro Sale?
ANS: This is a principal and
independent contract Title passes
to the vendee; possession is delivered
too vendee may dispose of the
same as absolute owner vendee is
obliged to pay the taxes if the seller
does not repurchase the property on
the date named in the contract, he
losses all his interest therein
extension of the period of redemption
is not allowed; however, partial
redemption is permissible the
object may either be movable or
immovable
Category:
Sales
and
Rights
of
Ownership
How long is the period within which
the vendor-a-retro can redeem the
property?
The period of redemption in a pacto
de retro sale depends on the
stipulation of the parties, but cannot
exceed ten (10) years. If there is no
stipulation, the period of redemption is
four (4) years.
When is marital consent needed in
Deed of Sale?
ANS: When the property relations
between the spouses is one of
absolute community, or When the
property
relations
between
the
spouses is one of conjugal partnership
and the property involved was
required during the marriage at the
expense of the common fund
Category:
Sales
and
Rights
of
Ownership

Twenty19 8

When is marital consent not

necessary in Deed of Sale?
ANS: When the property relations
between the spouse is one of absolute
separation, or When the property
relations between the spouses is one
of conjugal partnership, but the
property involved: Was brought into
the marriage by either of the spouses
as
husbands
capital
or
wifes
paraphernal property Was acquired
by either spouses by inheritance
Was acquired with exclusive funds of
either of the spouses
Category:
Sales
and
Rights
of
Ownership
What are the rights of real estate
installment buyers?
ANS: Under the Realty Installment
Buyers Act (RA 6552) otherwise
known as the Maceda Law, if the buyer
has paid less than two (2) years of
installments, he is entitled to a grace
period of not less than sixty (60) days;
if he fails to pay the installments due
within the grace period given, he is
still entitled to a notarial notice of at
least thirty (30) days duration before
the seller may cancel or rescind the
contract. If the buyer has paid at least
two (2) years of installments, he is
entitled to: Pay, without additional
interest, unpaid installments due
within the total grace period earned by
him (i.e.) one (1) month for every year
of installments payment effected;
provided however, that such right
shall be exercised by him only once in
every five (5) years during the life of
the contract or its extension, if any
Refund, if contract is cancelled after
the notarial notice of cancellation or
rescission of at least thirty (30) days
duration, of the cash surrender value
of payments made (i.e.) 50% of total
payments effected during the first five
(5) years but not exceed 90% of total
payments made *Downpayments,
deposits or options on contract shall

ELS Summer 2016

LTD Q&A

be included in the computation of total

payments made. In both categories of
installment buyers, they shall have the
additional right to: Transfer or
assign their rights to the contract
Pay in full the purchase before the
expiration of the contract term without
interest

Have
the
contract
annotated on their titles
Category:
Sales
and
Rights
of
Ownership
What are the rights of real estate
installment buyers?
ANS: Under the Realty Installment
Buyers Act (RA 6552) otherwise
known as the Maceda Law, if the buyer
has paid less than two (2) years of
installments, he is entitled to a grace
period of not less than sixty (60) days;
if he fails to pay the installments due
within the grace period given, he is
still entitled to a notarial notice of at
least thirty (30) days duration before
the seller may cancel or rescind the
contract. If the buyer has paid at least
two (2) years of installments, he is
entitled to: Pay, without additional
interest, unpaid installments due
within the total grace period earned by
him (i.e.) one (1) month for every year
of installments payment effected;
provided however, that such right
shall be exercised by him only once in
every five (5) years during the life of
the contract or its extension, if any
Refund, if contract is cancelled after
the notarial notice of cancellation or
rescission of at least thirty (30) days
duration, of the cash surrender value
of payments made (i.e.) 50% of total
payments effected during the first five
(5) years but not exceed 90% of total
payments made *Downpayments,
deposits or options on contract shall
be included in the computation of total
payments made. In both categories of
installment buyers, they shall have the
additional right to: Transfer or
assign their rights to the contract
Pay in full the purchase before the
expiration of the contract term without

Twenty19 9

interest

Have
the
contract
annotated on their titles
Category:
Sales
and
Rights
of
Ownership
How are sales extinguished?
ANS: Same causes as all other
obligations;
to
wit:
payment,
performance or loss of the thing due,
by condonation or remission of the
debt, confusion or merger of the rights
of the creditor and debtor. By
compensation and by novation By
redemption (conventional or legal
redemption)
Category:
Sales
and
Rights
of
Ownership
What is conventional redemption?
When does it take place?
ANS: In Pacto de Retro sale,
conventional redemption shall take
place when the vendor reserves the
right to repurchase the thing sold, with
obligation to return the following:
Price of the sale Expenses of the
contract Other legitimate expenses
Necessary expenses on the thing
sold Useful expenses on the thing
sold
Category:
Sales
and
Rights
of
Ownership
What is legal redemption?
ANS: Legal redemption is the right to
be subrogated, upon the same terms
and conditions stipulated in the
contract, in the place of one who
acquires a thing by purchase or dation
in payment (dacion en pago), or by
any
other
transaction
whereby
ownership is transmitted by onerous
title.
Category:
Sales
and
Rights
of
Ownership
What are the examples of legal
redemption?

ELS Summer 2016

LTD Q&A

ANS: By a co-owner: each co-owner

can redeem in proportion to what he
owns By an adjacent owner of rural
land provided: The land is one (1)
hectare or less The grantee has
rural land already, otherwise, grantee
must be given chance to own rural
land, preference to owner of smaller
area; if the same area, to the first who
requested redemption. By an
adjacent owner of urban property : if
seller had previously bought the small
area for speculation; preference is
given to adjacent owner with the best
intended use for the land. Here also,
Right of Pre-emption is grantedright
to redeem/ purchase before property
is disposed of.
Category:
Sales
and
Rights
of
Ownership

How long is the period

redemption or pre-emption?

of

ANS: Within thirty (30) days from

notice in writing by vendor Within
thirty (30) days from date assignee
demands payment
Category:
Sales
and
Rights
of
Ownership
Foreigners may acquire and buy
real
estate
property
in
the
Philippines under the following
conditions:
1. The property was acquired under
the 1935 Constitution.
2. Acquiring real property through
hereditary succession.
This means that a person (not Filipino)
inherited the property or land which
may have been acquired under the
1935 Philippine Constitution.
3. Not more than 40% of the units of a
condominium project.
4. If the property was bought by the
owner when he or she was still a

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natural born Filipino citizen but subject

to the restrictions provided by law.
5. For former natural born citizens, the
ownership of an urban land shall be
limited to 1,000 square meters while
for rural land, it must not exceed 1
hectare and must be used exclusively
for residential purpose in accordance
with Batas Pambansa Bilang 185.
For married couples under this rule,
one or both may own land as long as
the total area of the combined
property shall not go beyond the
maximum limit.
For Filipinos who married a foreigner,
Philippine
citizenship
is
not
automatically
relinquished.
Under
Article IV Section 4 of the Philippine
Constitution,
Citizens
of
the
Philippines who marry aliens shall
retain their citizenship, unless by their
act or omission, they are deemed,
under the law, to have renounced it.
An example of renouncing Philippine
citizenship is when a spouse would
swear allegiance to become a citizen
of the spouses country. Any person
although married to a foreigner can
buy and own land in the Philippines for
as long as they have not renounced
said citizenship. They may acquire and
own land without restrictions since
they are deemed to have retained
their citizenship.
6. Under the Dual Citizenship Law of
2003, natural born Filipinos who
eventually
lost
their
Philippine
citizenship to another country because
of naturalization may regain their
Filipino citizenship after swearing
allegiance to the Philippines. After the
reacquisition
of
the
Philippine
citizenship, they are again considered

ELS Summer 2016

LTD Q&A

as citizens and may own real property

without any constraints.
7. Foreigners may own houses or
building but not the land where the
structures are built on. A foreign
individual or corporation may only
lease and not own Philippine land.
Such lease shall be in a long-term
contract which must be good for 50
years and after which, the rent is
renewable every 25 years.
The right to own a real estate
property in the Philippines
Based on the standard Philippine law
on acquiring a real estate property in
the Philippines, Foreigners or nonFilipinos dont have the right to own
real
estate
properties
in
the
Philippines.
As
an
alternative,
however, marrying a Filipino national
is the easiest way for a foreigner to
obtain real estate properties in the
country. They may either share equal
rights or the Filipino spouse owns 51%
or more and the foreigner gets the
rest. In this case, further information
on special visas for foreigners who
may request an entire ownership is
necessary.
If the foreign owner desires to hold the
title as an individual, the title usually
falls under the Filipino spouses name
and the foreign spouses name which
was not indicated in the title at least
appears on the contract as the buyer
of the property. In case of death of the
Filipino spouse, the foreign spouse is
given a reasonable time to sell the
property and collect the proceeds or
else the property will be given to any
Filipino heir and or relatives.
Foreigners are given the right to own
houses or buildings for as long as they

Twenty19 11

dont own the land on which the house

or
building
is built. Foreigners
therefore may legally own their houses
or buildings but lease the land on a
long term contract. A foreign national
and or corporation may enter into a
lease
agreement
with
Filipino
landowners for an initial period of up
to 50 years and renewable for another
25 years.
For
foreigners
to
have
100%
ownership
of
condominium
and
townhouse units, few qualifications are
requested before buying the property.
The buyer must be at least 35 years
old and must meet the banks
investment requirements. The amount
of
the
deposit/investment
and
processing fee needed depends on
whether or not the foreign buyer is
married to a Filipino. Being married to
a Filipino citizen of course allows
almost all the investment privileges
like those of Filipino citizens.
For land ownership, only Filipinos and
corporations (at least 60% Philippineowned) are permitted to obtain such
property. Foreign acquisition however
is tolerated on special cases:
When the property was acquired
before the 1935 constitution
When the property was acquired
thru inheritance
o This means that the foreign acquire
is a legal or natural heir, which further
means that when the Filipino spouse
dies, the foreign spouse eventually
becomes the legal owner of the
property. This is as well applied to the
children.
Every
natural
child
(legitimate or illegitimate, Filipino or
non-Filipino) can inherit the property
of his/her Filipino parent.

ELS Summer 2016

LTD Q&A

Purchase of not more than 40%

interest in a condominium project
When the property was purchased
by a former natural-born Filipino
citizen subject to the limitations
approved by law
o Former natural-born Filipino citizens,
or commonly called "Balikbayans", are
allowed to own a maximum of 1,000
sq. m. of residential land and one
hectare of agricultural or farm land, a
maximum of 5,000 square meters of
urban land for business purposes or
three hectares of rural land. Married
couples, both or one of them may
avail the privilege given; the total area
acquired
shall
not
exceed
the
maximum.
In the case of a transferee who is
already owning an urban or rural land
for business or other purposes, he/she
remained a transferee provided that
when added to those he owned shall
not exceed the maximum.
Filipinos who are married to foreign
nationals and who retained their
Filipino citizenship, unless by their act
or omission, have given up their
Filipino citizenship.

Dual
citizenship
allows
the
citizenship holder full rights of
ownership of Philippine real estate
property, which further means having
two citizenships and passports from
two different countries. It is applied to
individuals who are naturally born
Filipino citizens, but have immigrated
to another country and have obtained
citizenship of that country.

Twenty19 12